Platinum still settles above the major support for the medium term ascending channel which took the metal to the 61.8% correction for the general downside trend that started from the recorded top at 2299.00 to the bottom at 745.00. …
Platinum Technical Analysis
The metal attempted to breach the support yet was bound by the horizontal support which is the most sensitive for the medium term trend; this level represents the neckline for a bearish pattern where it’s starting to appear on the chart above.
The completion of the pattern requires a slight short term upside move which might reach 1630.00 -61.8% correction for the last downside wave- and then reverse lower to complete the pattern.
Therefore, we recommend high caution and observing trading closely as the activation of this scenario and the breach of the neckline will take the metal down strongly towards 1150.00-1140.00, while breaching 1650.00 fails the bearish scenario and the metal will continue trading normally within the ascending channel targeting next 1850.00 per ounce.
By: Yasir Mubarak
Main Technical Analyst
yasir.mubarak@ecpulse.com